FAIR PAY STREAMING DEBATE CARRIES ON

Discontent over streaming-royalty payouts persists in the U.K., where a series of industry execs and artists, including Merck Mercuriadis and Nile Rodgers, offered evidence at a session in Parliament.

An update to 2021’s "Economics of Music Streaming" report, Tuesday’s session again focused on compensation for creators.

Mercuriadis criticized the decision to set up an industry working group to explore issues and develop action items regarding fair pay, calling it “a missed opportunity” to instead create policy interventions, Music Week reported. Mercuriadis pointed out that, based on streaming data, labels won't take a gamble on artists who haven't yet proven their potential.

Likewise, per The Guardian: "Rodgers was dismissive of the labels’ claim that their majority share of streaming revenues is fair because they invest millions into artists and repertoire (A&R), pumping money into acts that could easily flop. 'I really hate the fact that they keep using that argument, which is completely archaic,' said Rodgers. 'I hate to use words like "lie," but it’s a lie.'” The days when an act like David Bowie would be afforded the time he took to produce a hit record—his first Top 5 album in the U.K. was his fourth, 1971's Hunky Dory—is "truly over," Rodgers stated.

Others in the session included Music Publishers Association CEO Paul Clements, who defended major publishers for not driving up royalty rates. “The influence the majors have had has been a positive one,” he argued, noting that they increased the rate to around 15% from 7-8% due to bilateral negotiations with platforms. “As the tide has risen, everybody else’s rates have increased—and there is a real misunderstanding about how that has worked.”